Home Case Index All Cases Customs Customs + AT Customs - 2002 (12) TMI AT This
Issues:
1. Customs duty on imports of capital goods under DEPB scheme. 2. Differentiation between DEPB licenses and TRAs. Analysis: 1. The appellant, a registered exporter, imported items under the DEPB scheme during a specific period at Calcutta Airport. A demand notice was issued to pay customs duty on imports of capital goods made during the said period, alleging that capital goods could not be imported under DEPB licenses after a certain date. The lower authorities considered the appellant's plea that credits under DEPB could be utilized for payment of customs duty on items freely importable except capital goods. The authorities confirmed part of the demands, leading to the present appeal. 2. The Tribunal found that the lower authorities unjustly differentiated between DEPB licenses and TRAs without any valid reasons. The Circular No. 68/2000-Cus. was cited, emphasizing the use of TRAs for debiting DEPB scrips and permitting clearances from customs bonded warehouses. The Circular clarified the process of using TRAs and highlighted the facility's operation through the issuance of TRAs from the port of registration to the Commissioner having jurisdiction over the warehouse. The Tribunal deemed this Circular binding and concluded that the lower authorities' differentiation between DEPB and TRAs was arbitrary, thus setting aside their orders and allowing the appeal with the condition that valid TRAs should be honored. In conclusion, the judgment addressed the issues of customs duty on capital goods imports under the DEPB scheme and the differentiation between DEPB licenses and TRAs. It emphasized the need for consistency in treating TRAs at par with licenses and upheld the appellant's appeal based on the Circular's binding nature.
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